China's 12th five-year financial plan seeks more financial controls

China has released its 12th Five-Year Plan for the Development and Reform of the Financial Industry it hopes will promote the continued healthy development of its battered financial industry.

The plan focuses on achieving results in seven key areas: improvement of financial control; optimization of organizational system; development of the financial market; deepening of financial reform; expansion of opening-up; maintenance of financial stability and consolidation of infrastructure.

As a result of measures in the new plan, China expects that the added value of the financial services industry will be around 5% of GDP by 2017, with the scale of social financing maintaining moderate growth.

China will attempt to achieve overall control of financial risks by maintaining a relatively high standard in the quality and level of capital in major banking financial institutions. The non-performing loan ratio shall be kept at a relatively low level, and the capacity for risk management control shall be constantly improved.

China said it will achieve significant progress in financial restructuring if the direct finance of non-financial enterprises is above 15% of the total social financial scale.

It also expects progress in the reform of market-oriented interest rates and the improvement of the RMB exchange rate system. Deeper reforms of financial institutions should see significant development in the modern enterprise system for large financial institutions with innovation and risk control management greatly improved.